Many private harms caused by the government shutdown are due to its own insistence on meddling in our lives.
“We need to get the government back to work so that America can get back to work”. A curious statement from the Commerce Secretary.
This statement epitomizes the reasons why smaller government is a must. It is the main focus of Libertarians. While the talking heads in Washington talk about the 800,000 federal workers who we now find will be held harmless in this shutdown, it is the tens of thousands of private workers who will bear the brunt of and out of control federal government that creates this dysfunction.
The federal government has its tentacles into every facet of our lives and we become numb to their rules. Commerce, much of which is only taking place within individual states, must comply with mountains of federal regulations and red tape to operate. America was never meant to be that way.
One overriding example of this is the requirement for employers to check the citizenship status of anyone they wish to hire with E-verify. E-verify is closed so positions, some perhaps essential to the business, can’t be filed. This is a federal shift of responsibility to employers when the federal government refuses to do one of its primary functions.... secure the border.
Craft brewers have many of their operations stymied because, regardless of the distribution, the federal governments ATF must approve applications for new or expanding breweries, recipes, and even labels. This is how intrusive and abusive the Commerce clause has taken. A micro brewery in Milwaukee will lose $8000 a month and people he had lined up to hire are all on hold, not just for the period of the shutdown but for the amount of time it will take to clear the backlog.
Fishermen in the Northwest require a federal license to catch fish and crabs...... It is now moving in to crab season but they can’t fish because of federal laws in coastal waters. Crab prices will rise as a result but you won’t see that as part of any inflationary effects because food isn’t factored.
Because the Johnson Space Center is closed, 3200 federal workers are furloughed. They will receive back pay but the 11,000 private contractors who work there will not. They are not laid off and eligible for unemployment.... they are just out of work.
Probably the one thing I find so egregious about the size and impact of the federal government is the number of private business that are in dire straits because the derive much of their income from federal employees... eateries, convenience stores, cleaners etc. Why are these people not supporting other workers in private enterprise?
The government is so involved in our lives that even basic commerce—simply hiring people—is threatened by political jockeying. Democratic Sen. Harry Reid attacked Republicans as “anarchists” for bringing about the shutdown. Nothing could be further from anarchy than fishing boats sitting idle, waiting for a government functionary to give sailors permission to work. And yet, the common response is anger about the government shutdown, not anger about having to jump through so many hoops in the first place.
We are hearing some encouraging signs though.... Washington is starting to experience a brain drain of junior staffers who, because of tightening budgets, must choose between a government job and a more lucrative position in a private firm... They are reluctant though... Job security with the federal government is so much better... Besides, with pockets as deep as the American taxpayer can dig, its only a matter of a ‘resolution’ that they get lost wages because of a shutdown... private industry doesn’t have the luxury, regardless of how fat you think the cats are....
Thoughts as to why we need a 27,000+ page tax code or regulations that implement the affordable healthcare act that are about 30 times the volume of the original law? Why we allow the Commerce Law to effect private business that has nothing what so ever to do with interstate commerce? Why private business is forced with the burden of so many federal regulations when, at the end of the day, it is the employer who puts up the time, money and risk to provide jobs and add to the real GDP?
First what is your definition of private industry? Is it small business, is it privately owned companies or can it be expanded to the true definition of any non government entity, even ones openly traded in our stock markets, because they too are ultimately private industry.
ReplyDeleteVery little of our economy crosses state lines? Are you really serious the Scott?
Let's start with the small repair company that I mentioned in an earlier piece that charges 125 an hour for labor but pays it's workers less then $20 an hour in pay. They do refrigeration work. No the Scott keep in mind in many businesses that refrigeration units are sometimes custom made to fit the available space and need. Let's look at a Delfield cooler in our store. Delfield is based in Mt Pleasant, Michigan so the very fact that we have the unit in NC is interstate commerce. When the local small business comes to fix it let's say it needs a new compressor and because it is custom made that compressor has to come from Delfield or the company that initially manufactured the piece for Delfield. Since it is a custom piece the small local repair shop has to order it from the manufacturer. Presto we have interstate commerce, not only on the purchase of the piece, but the repair company is selling it to an out of state business doing business in NC. So the part is ordered from Michigan by a company located in wake Forest NC, they receive the part bring it to the business, install it and bill a company out of Dallas Texas. Ig that is not interstate commerce please tell me what is. The largest part of our economy is retail and services. Where is Walmart located? Bentonville Arkansas. Where is Target located, Minneapolis. Where are Darden Restaurants located Orlando Florida, each and every one involved in interstate commerce and when you make a purchase of Kellogg's Corn Flakes at your local Costco you have just involved yourself in interstate commerce, they were made in Battle Creek Michigan, and Costco is out of Seattle Washington.
Another huge part of our economy is Banking and Finance. We have at least four banks that operate almost nationwide and in some cases nationwide. Bank of America has a presence in all 50 states, Citigroup is the largest issuer of credit cards in the world so one would assume that they also touch all 50 states, Chase all fifty, Wells Fargo 39 States. Would that not all be interstate commerce?
ReplyDeleteAbout your brewery in Milwaukee, he can hire anybody he wants. See if you would have done your research you would know that Wisconsin, even with it's tea party leaning governor and legislature is not a mandatory E verify state. How interesting how that happens that these extremists want to cast their will on so many people before their own house is in order. So the Scott, the Milwaukee brewer doesn't have to wait to hire he can go ahead and hire Canadians, Mexicans, Germans whatever based on the old rules that the documents pertain to the person and they appear to be real. Yes the Scott that was the requirement before E verify. It is not the employers obligation to do any more then that unless mandatory E verify is in place which it is not in Wisconsin. And even in E verify states employers under 25 persons in many cases are not required to use E Verify. Another victory for the small businessman!
So why all the laws? Well the Scott if humans could be trusted to do the right things, even if they cost a little profit then we wouldn't need laws and regulations would we. Unfortunately that is not the case. Without laws we would return to the 1800's where people and children would work long hours for little pay while the fat cats got fatter with no concern for the safety, well being or quality of life for the producers who have made them wealthy. All businesses? Well no. Henry Ford paid his employees fairly and why? So they could afford to buy the product. I my experience I find that the smaller the business the greater the neglect of the employees. Maybe that is because they can hire who they want (see E verify above.)
Here's some more about E verify the Scott, in my state it is mandatory for all businesses that employ more then 25 people. Before this year under a democratic legislature temporary employees could be hired for 90 days. Under this new republican bunch that has now been expanded to 9 months. That almost makes it worthwhile to hire illegals, train them for a month, get 8 months of productivity out of them and let 'em go. Which party is looking out for the American middle class?
ReplyDeleteMany of the businesses that have complained of lost revenue due to the shutdown are in D.C. and other pockets of heavy government employment. Why? It's not that they cater only to the govt it is because govt employees are a big part of their business due to what they do and where they are located.
ReplyDeleteFor example if I were a caterer why wouldn't I locate my business in DC where their are endless govt meetings and functions that need my services? If I were a dry cleaner what better place to locate then a Washington suburb where so many people need the service. How many people are furloughed that would daily stop by my convenience store for a donut and coffee and gas to munch on as they entertain themselves watching 500 ignorant truck drivers waste time, fuel and money circling the Capital Beltway. the Scott, it isn't that I won't cater to those in private industry, I will clean the businessman's clothes who works for XMSirius Satellite Radio (yes the XM part is in DC) or Rolls Royce out in Reston, or the executive out in Arlington at Lockheed, if he is still working. I will do those things. But the bulk of my business comes from the government employee not by choice but because it is.
A comprehensive reply rick... thank you. So much that occurs here are snipe and I respect delineated opinion even if I may have disagreement with it because one thing is for sure, we will never understand each other until we honestly try to understand why we have the opinions that we do and honestly assess why we disagree with others.
DeleteFirstly I will answer your question with reference to ‘private industry’. Private industry regardless the size or how it is funded is private. If someone buys shares in a company through the stock market that is a private investment in a private company. Government control should not be exerted of a family owned business any differently than they may for a publically funded one.
One thread that that I have seen in several of you comments references wage disparity, distribution of wealth and minimum wage issues. Will these things are a problem to be looked at; they can exist in most any economic model... Given your cheer leading of Keynesian economics over the last 100 years it is evident that Keynesian economic model is not an corrector of this problem and neither would Austrian theory given the wrong regulatory environment.
I don’t mean to diminish the need to look at why this problem exists but I am saying that not every part of commerce effects it and not all regulations address it... and those that do may be more detrimental than no regulation at all.
With regard to interstate commerce we have a totally different perspective of its intent with respect to the constitution. There are 4 groups of people who live in this country with respect to our country and all of its respective borders. 1)Those that think that all business and life should be controlled locally, that is, between the parties without interference from government at all 2)Those who believe in strong states rights to govern for and with the citizens of that state. 3)Strong federalist who wish to diminish the rights of states and indeed individuals having all authority reside in Washington. 4)And lastly a group of people who wish to see the borders of the United States and indeed all borders disappear in favor of a singular world authority.
The people who wrote the commerce clause universally used the word ‘commerce’ in federalist papers, the discussions during the drafting of the constitution and in every state ratification convention to refer to trade or exchange, rather than ‘all gainful activity’. Even Hamilton who was a devout nationalist had no illusion about the purpose of the commerce clause and recommended a national bank for the purpose of closing interstate commerce and made clear distinction between ‘commerce’ and ‘production’.
Those who have worked tirelessly to change the intent of the constitution have no desire for individual or states’ rights and use the commerce clause to attempt to control everything that is or even might be done between the states. .... This push had been taken further by other show would like to see the US dissolve from a sovereign nation to an administrative part of a consolidated government. Over arching treaties made in the UN and the push for the TPP and the destructive use of ‘free trade agreements’ move us nicely in that direction.
Continued>>>>
So, while I understand what you are saying.... wages paid by an employer to a worker in another state is a private contract and nothing to do with ‘commerce’ and the only thing that the federal government has to do with a manufacture of a product in one state with a buyer in the other ... is the unencumbered shipment of that product under the commerce clause and the execution of a lawfully prepared contract under the contract clause... What one person in a state wants to buy from a person in another state, so long as the product is not illegal, has nothing to do with the federal government... because, clearly delineated in the discussion and intent of the constitution ... ‘products’ are not commerce..... only movement is.
DeleteObviously this can be argued until blue but this is my position and reasons for it... the fed has no business restricting business between the states and in doing so, hurts workers, hurts innovation and further erodes the constitution and the will of a free people.
Rick... You confuse a Milwaukie brewer looking for ATF licensing with any other business looking to hire someone. Firstly while not all states require E-verify , 8 USC § 1324a makes it pretty clear to ALL employers in ANY that if they hire an illegal, they could face federal fines and penalties....so using E-Verify is considered ‘good faith’ in absolving liability with the FED !....... so even a person in Wisconsin, while not having to worry about a state requirement, damned well better worry about one of the hundreds of federal pitfalls.. So now we have a different discussion.... who is better enforcing the laws already on the book and who is doing their damnedest to prevent illegal’s from showing up at the job fair in the first place... Answer there.... neither.
Again, you rely on the need for overarching federal laws that never look at local situation. An example from the UK.... The government capped benefits for housing to a certain amount >> Nation Wide <<<. Businesses in London primarily are now finding a labor shortage because unskilled labor cannot afford to live or commute there but people in other parts of the country can live so well that they have no incentive to get off of the housing dole.. Its not about not having laws... I am not part of the anarchies wing of the libertarian movement any more than you are, I presume, part of the communist party... States and localities deal with business and living conditions.... this was part of the beauty of the several states. If one state was no good, just like a bad employer, you could up stakes and leave. Allowing for individuality among communities and states allowed for competition and ... well.... liberty.
Your last thing is important in a lot of ways. They certainly could remove, to the best of their ability, the ‘federal effect’.... that is indeed a business choice and one that has its risks. The Fed open and close facilities all the time having great impact on local communities. Commerce springs up to support those employees.... that is a business risk but.... if much of the federal function were relocated to the states... where, IMHO, it belongs, areas of government influence will be more stable and going forward I think states have learned a valuable lesson about fiscal disciple whereas the federal government doesn’t. Those businesses wouldn’t have been created by the way had the federal government not been supporting (propping and creating) economic situations with fabricated cash..... Those business may have still had the same business, perhaps even predating any federal worker patronage, but they would have run it and financed it in a way that is not contingent on a huge government incursion into the domestic GDP which is neither authorised or warranted under the US Constitution.
the Scott I just read another piece on the effects of the shutdown on a small businessman. This was about Under the Eaves, a small bed and breakfast at Zion National Park. This business relies solely on the park being open. And at this time of year they are losing a lot. What do they do? well they provide accommodations for a few, but they also provide assistance to park visitors by helping them plan their day, suggest accommodations and amenities in the area. They are losing big right now because it is fall. Many open minded people (the narrow minded just don't get it) see the beauty of our country and like to visit it in the varying seasons fall being the biggest. Fall when the country makes a vivid transition from green to highly colorful. America is a land of almost unbounded resources yes, but it is also a land of unbounded beauty. Even as an atheist I have an appreciation for the beauty of our land although we most probably disagree on how it all got here.
ReplyDeleteIf this problem exists in Utah where the trees are minimal compared to the east or California, imagine the overall impact nationwide for the thousands of Under the Eaves located around our other natural wonders. And the Scott these are not people catering to the government but to average people like you and me who just want a little downtime and a chance to enjoy what mother nature has blessed our country with.
Which beckons the question.... Why was it required that the Federal government remove administration of the lands which reside in the various states and forbid people entering those lands just because a park ranger isn't available. Lands set aside as federal parks are notoriously wild and dangerous and it is about time that people realize that it is their choice and good judgement to keep themselves save while visiting and the federal government to realize that THEY DON'T OWN THESE LANDS... THE PEOPLE DO!
DeleteYes TS, we collectively own these lands. We do not, however, collectively care for them. I do, believe it or not, understand the libertarian view and though you suggest above that you appreciate people trying to understand each other, I'm not sure I really believe it's in any way necessary for you to understand why left leaning people think the way do unless it gives you a point to score against them.
DeleteWithin the parks, there is plenty of wilderness space, and I mean A LOT of wilderness space where people can go and have a complete libertarian experience and be completely on their own to deal with whatever presents to them. At the entry points, however, are areas set aside for the public who doesn't want a wilderness experience to enjoy. Zion is one of those places and in fall, it is beautiful. I don't particularly like that the entry and exit is so heavily restricted, but I greatly appreciate that there is an area of land that is easily accessible for everyone that is not also just trampled in a free for all.
Welcome back Max.... I thought that you had quit posting. I took a break to enjoy some other interests. I do try and understand and I do for the most part but I strongly disagree for reasons that I do my best to explain. Sometimes that becomes difficult because either you get a reply that is sharp or you spend the time to continue the conversation and the subject gets dropped. I have no problem absorbing other ideas... if they make sense to me..
DeleteAs far as the more public, less native areas of the various national parks. Their may have come a time when that maintenance became so necessary that preventing was required but the amount of manpower required to shut out the public was certainly enough to prevent vandalism. The shutting of these parks was instantaneous and done with all the malice in the world.... parking lots at mount Vernon... Please... Did you hear about the guy that was tossed off the national mall because he was cutting it for free.....
Anyway... Glad you are here
The entire debate is so false. We spend all day talking about a few park rangers while a healthy percentage of 800,000 other government paid minions need to be let go through attrition.
Delete17T and counting. I weep for the next few generations being born into onerous debt.
TS are we the people the government? Therefore the govt , the people according to the constitution do own the federal lands. But it takes employees of the government to control what happens on those lands. The shutting of the parks was not done with malice. It's probably one of the easiest govt entities to furlough.
DeleteMy ass Rick.... the memorials in Washington rarely see park police and maintenance is minimal.... It has taken the US government more money, more over time and more resources to block entrance to these places than it would have to leave it open and if you believe that putting up barriers on the first day of the shutdown was easy... it took a considerable amount of planning, logistics and personnel to put up barriers to block parking spots at Mount Vernon for God sakes...
DeleteIt was done with malice just as Obama's way of dealing with the sequester that HE SIGNED UP TO...
Cuts in Head Start, meals on wheels had deep cuts while Homeland security managed to absorb its 5% by rescheduling workers, stopping unnecessary overtime and institution a hiring freeze (albeit temporary).... as if they needed more gropers...
The fact is Obama is not using the sequestration to cull unnessisary waste in the government. He is using it in ways to demonstrate just how nasty those republicans were for forcing him into the deal to ..... raise the debt ceiling one more time because the government is out of control.....
William, you are of course correct but until this yahoos on the left and right see that the power junkies in Washington are using their power not to reign in spending but to preserve their power voting attitudes will not change...
The battle is generational TS. Our educational system and craven media produces well trained seals.
DeleteAdjust, flank, attack, skirmish, adjust,,,this is what a movement is good at. We will take it to our graves.
1773-2009